What is an Installment Loan?

Definition

An installment loan is a loan in which there are a set number of scheduled payments over time. Many different types of loans are installment loans, including mortgages and auto loans. A credit card may require a monthly minimum payment but it is not an installment loan.

Example

Let’s say John took out a $5,700 installment loan to consolidate high-interest credit card debt. After a 4.75% administration fee, his amount financed was $5,429.25. With an APR of 29.95% and a 36 month term, he will pay back the loan in 36 regular monthly installment payments of $230.33.

Installment Loans vs. Payday loans

In general, payday loans are for a shorter duration, have a higher interest rate, and are often paid back in a single lump sum payment on the borrower’s next payday. In contrast, an installment loan can last for many months and payments are evenly spread out over the term of the loan.

Duration

At Avant, we provide access to personal loans. Loans have terms that range from 24 months to 60 months.**

Avant branded credit products are issued by WebBank, member FDIC.

Loan amounts range from $2,000 to $35,000. APR ranges from 9.95% to 35.99%. Loan lengths range from 24 to 60 months. Administration fee up to 4.75%

** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

* The actual loan amount, term, and APR amount of loan that a customer qualifies for may vary based on credit determination and state law. Minimum loan amounts vary by state.

† The approval process may take longer if additional documents are requested. Approval and loan terms will vary based on credit determination and state law.

‡ Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday.

◊ Testimonials reflect the individual's opinion and may not be illustrative of all individual experiences with Avant.

ˆ Based on the responses from 5,854 customers in a survey of 115,957 newly funded customers, conducted from June 1, 2017 - March 1, 2018, 94.64% of customers stated that they were either extremely satisfied or satisfied with Avant.